Residential Accomodation Provided by employer:
For govt. employee: License fees fixed by
government + 10% of cost of furniture or hire charges – amount recovered from
employee.
For non. Government employee:
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Population
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Owned by employer
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Hired by employer
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If population is < 10 lakhs
If population is >10 lakhs but < 25 lakhs
If population is> 25 lakhs
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7.5% of salary
10% of salary
15% of salary
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Actual hire charges or 15% of salary whichever is less.
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If furnished
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Add 10% of cost or hire charges
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Add 10% of cost or hire charges
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If concessional house
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Deduct amount recovered from employee
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Deduct amount recovered from employee
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Hotel accomodation (more than 15 days)
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24% of salary or actual expenses whichever is lower
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24% of salary or actual expenses whichever is lower
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Meaning of salary
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Basic + DP + DA which enters + fee + commision of all types + statutory
bonus + all fully taxable allowance + salary in lieu of leave for current
year but does not include arrears advance perquisites, provident fund excess,
gratuitous bonus.
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Capital Receipts
A receipt in
lieu of source of income is a capital receipt. For e.g., Compensation for the
loss of employment is a capital receipt. Capital receipt is generally referable
to fixed capital. For e.g., Sale price on the sale of assets, which assessee
uses as a fixed asset in his business is a capital receipt. Capital receipts
are never taxable. That‟s why amount received from insurance company at the
time of maturity is not taxed under Section 10(10D). Similarly loan taken is
also not taxed. However, some of the capital receipts are taxable since they
have been specifically provided in the definition of Income such as tax on
Capital gains on sale of Capital asset.